Unfortunately, his eyebrow-raising intervention into what has typically been the preserve of the C-suite and boardrooms showcased a Treasurer tone-deaf to the challenges confronting capital allocators and the priorities of the people that own companies - the shareholders.

It's hard to make the case for a capital expenditure splurge when profits are under pressure, there's no pricing power, excess capacity dogs many industries, competition from offshore and digital disruption is intense and growing, and last but not least, there is fragile demand.

It's not surprising then - expect perhaps for the Treasurer - that companies are choosing to husband capital and return it to shareholders via higher dividends and buybacks, and maintaining capital discipline rather than writing novelty-sized cheques.

Investors say capex coyness is a manifestation of the uncertainty that has prevailed since the global financial crisis.

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Repeated body blows since, with the Eurozone debt crisis, the US credit rating downgrade, fears about a hard landing in China, and now trade war recession jitters have sapped business sentiment.

"I understand where he's coming from but the reasons for the lack of investment in Australia aren't because shareholders are demanding dividends or the dividend paying culture has come to dominate," says Shane Oliver, AMP Capital's chief economist.

"It reflects a wariness on the part of companies since the GFC and ongoing spare capacity."

Tight grip

And this week's capital expenditure data and forecasts showed companies are likely to keep a tight grip on the purse strings. Businesses estimate they will spend $113 billion this financial year, which will likely result in little growth once the financial year is completed.

Lost amid the heat of the debate sparked by the Treasurer's comments is the reality that the nation's biggest companies are both investing capital and paying dividends or undertaking buybacks.

"We have no concerns with companies making good investments. The problem is that our research shows that those who invest the most, unfortunately, are often the worst investments to be in because a lot of companies have a tendency to overinvest and waste money".

Financial accounts show executives are doing a pretty good job of balancing the need to invest in their businesses and deliver for shareholders.

Wesfarmers has targeted net capex of between $550 million and $750 million in 2020, up from $363 million and $576 million in 2019 and 2018 respectively. Investors also received a total dividend of $2.78 a share in 2019, compared to $2.23 a share in the prior year.

New religion

The mining industry - traditionally a standout destroyer of shareholder value - has found the new religion of capital discipline with the mantra of value over volume. Shareholders are also enjoying dividend rises.

BHP has forecast capex and exploration of "below" $US8 billion in 2020 and $US8 billion ($11.9 billion) in 2021, up slightly from $US7.6 billion in 2019.

It's important to note that net debt is below the miner's target range, and thus it has the firepower to spend more if it wanted.

But it's what the cash is being spent on that's important. For example, the company last year committed $US2.9 billion to the development of its South Flank iron ore mine. The key here is that these new tonnes will just replace those from its Yandi mine and not significantly swell global supply and depress prices.

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Fortescue Metals Group also emerged as notable big spender this reporting season. The miner will increase its capex from $US1.04 billion in 2019 to $US2.4 billion. But again, $US700 million will be spent on its Eliwana development that will replace tonnes from its Firetail mine that is at the end of its life.

Top of mind for the Treasurer should be another important destination for spending at the big miners - technology. Big miners are investing in productivity-boosting technology, but innovations like autonomous trucks will cut jobs - a bad outcome for a politician.

But for companies exposed to the sluggish domestic economy, finding opportunities that deliver a return above the cost of capital is difficult when the consumer is under pressure and wages growth is slow.

"In Australia, where we have quite mature companies, what's a marginal investment going to be? If they start breaking out into things where they don't know what they're doing that can cause problems," Dr Hamson says.

That lack of certainty has investors preferring the surety of a dividend rather than burning capital on bad investments or an overpriced acquisition.

"We do have this dividend paying culture and therefore companies give their money back to shareholders if they can't see a use for it, says Dr Oliver.

"I'd much rather that than them building monuments to the CEO and then realising that was a huge mistake".